JOHANNESBURG (miningweekly.com) – Africa-focused exploration company Paragon Diamonds announced on Tuesday that it had entered into a memorandum of understanding (MoU) with a private Botswana company to secure several prospecting licences (PLs) across diamond-prospective terrains in Botswana.
The PLs cover 1 686 km² over several known kimberlites, including one in the Orapa kimberlite field and their acquisition would enable the company to quickly accelerate its exploration presence in the Southern African country.
The licences, which were issued in July 2011, are valid until June 2014 and can be extended for a further four years subject to certain conditions.
The MoU stipulates a six-month period during which Paragon may review data on the licences, undertake appropriate due diligence and negotiate earning an equity interest in the licences in return for funding exploration costs, on terms still to be finalised.
Paragon MD Stephen Grimmer said the company was looking to rapidly develop producing and exploration diamond properties into a portfolio of high-value assets in Africa.
The company has secured a series of assets, which its exploration and development teams are working to progress, with a core focus on the company’s hard-rock licences in Lesotho, a major diamond-producing region.
“The company is also seeking to increase its presence in Botswana, through direct applications for PLs," Grimmer said.
Paragon’s primary projects include the Lemphane diamond operation, in Lesotho, the Motete Dyke exploration project, in Lesotho, the Kaplamp diamond licence, in Zambia, the Kopje exploration project, in Botswana, and the Mabuki diamond operation, in Tanzania.